Twelve ways of giving this Christmas
Christmas is here again and charity campaigns are highlighting a host of good causes to donate to. This year charities need your help more than ever. Research shows that total giving by individuals is down 11 percent in 2009 which means we have given £1.3bn less than last year.
Everyone knows its good to give, but what is the best way to give? Here the Charities Aid Foundation (CAF) brings you a quick breakdown of the best ways to make your donations to charity go further this Christmas - without costing you a single penny more - and other ways which you can help charities over this festive period.
1 Tick the Gift Aid box - If you're a UK taxpayer making a donation to charity in the UK, you can add Gift Aid. This means Her Majesty's Revenue and Customs will give an extra 28p to the charity for every one pound you donate. If you're a higher-rate taxpayer you can also claim the difference between the basic and higher-rates of tax on your donation. CAF estimates that around £750m of Gift Aid goes unclaimed each year - money which could really help charities through the recession.
2 Give As You Earn - You can give to charity easily through your salary. With Give As You Earn, donations are taken from your pre-tax pay, and benefit from the full income tax-relief. This means that a £10 donation will only cost you £8. If you're a higher-rate tax-payer it will only cost you £6. In addition to this many companies offer to match donations made, meaning your £8 could result in up to £20 going to charity. To set up Give As You Earn please see: cafonline.org/giveasyouearn
3 Open a CAF Charity Account - A CAF Charity Account is a lot like a bank account, but for charitable donations. All the money held in a CAF Charity Account receives Gift Aid automatically and you can donate to any charity easily via a charity chequebook, charity card or online through the CAF website. Cheques can also be used to sponsor friends and families who are taking part in a sponsored event or put in the collection plate at Church.
A CAF Charity Account can be opened by setting up a direct debit for £10 or more a month, or a one off donation of £100. Alternatively, you can fund your account through Give As You Earn. For more information on a CAF Charity Account, please visit: cafonline.org/charityaccount
4 Buy gifts from charity shops - Buy gifts for friends and family from charity shops. As well as finding a bargain, you'll also be raising funds for charities. Gone are the days of shoddy bric a brac and second hand videos, many charity shops have been inspired by Mary "Queen of Shops" Portas' makeover of a Save the Children shop and now specialise in selling designer clothes or quality second hand books. To find charity shops local to you, please visit the Association of Charity Shops website, charityshops.org.uk
5 Donate unwanted gifts to charity shops - Donate your unwanted Christmas gifts to a charity shop and help charity. Gift Aid can now also be claimed by the charity shops on donations, so if you donate something of value please ensure that they are aware you are a taxpayer. They should take your details and contact you to ensure that you are still a taxpayer when the donated item is sold. 28p will then be added to each pound raised. Try to donate in person as this adds to savings the charity makes as they don't need to pay for the collection.
6 Charity Gifts - A charity inspired gift can be the perfect present for those who already have everything. Most major charities have their own charity gifts that you can purchase from their website. Another great place to find charity gifts is Good Gifts which offers a range of gifts that can help a range of causes - goodgifts.org. If you're unsure of the cause the person you're giving to would like to support, then why not buy CAF Charity Vouchers which can be donated to any charitable organisation in the UK? For more information on CAF Charity Vouchers, please see: cafonline.org/default.aspx?Page=7022
7 Give Shares - Giving unwanted shares means you could minimise your tax bill. If gifted, it is possible to claim full personal tax relief on listed shares, unit trusts, open-ended investment companies, and also relief on capital gains tax. So if you donate £1,000 it could reduce your tax bill by £220, or £500 if you're a higher rate tax payer.
8 Save Money and help charity - Charity Bank offers a savings accounts for individuals who want their money make a difference. It acts like any other savings account, the only difference being that the interest earned allows Charity Bank to offer affordable loans to charities, voluntary organisations and social enterprises. In addition to this the interest earned on your deposit can be donated to your favourite charity or put into a CAF Charity Account. For more information on this see: charitybank.org
9 Legacy - Why not use any spare time you have this Christmas to plan ahead for the future and set up a charitable legacy? Legacies were worth £1.8bn to charities last year, but only 14 percent of wills include a charitable legacy. Gifts to legacies can be made for money and items of value, such as jewellery, artwork or a vehicle. All donations made to charity in your will are exempt from inheritance tax. CAF's Legacy service allows you to give to multiple charities easily and to change your mind at any moment - without the need to re-write your will each time. cafonline.org/legacy
10 Volunteering - Helping people over the Christmas period with your time might prove to be invaluable and let others share the joys of Christmas. Helping in a homeless shelter, sending cards to the armed forces, or going on a volunteer holiday break over the Christmas period are all ways in which you can help others this Christmas. Or why not set a New Year's Resolution to start volunteering regularly for charity? More information on volunteering: timebank.org.uk or do-it.org.uk
11 Make your time online work for charity - Websites such as froggybank.co.uk, giveortake.com, and ushopucare.co.uk are among those which allow you to shop at the largest online retailers for Christmas gifts and a commission will be paid to the charity of your choice. Instead of using Google, use everyclick.com which donates proceeds to the charities they work with or to the charity of your choice. So far they have raised over £900,000 for charity.
12 Take a keep-fit resolution - Interested in keeping fit in the New Year? Why not get the motivation you need to keep a resolution and sign up to run the London Marathon 2010 for charity. Although the ballot has now closed a website called Crunch offers places to those willing to raise at least £1,200 for partner charities through sponsorship, please see: crunch.org.uk/marathon.php for more information.